What are the costs for liability insurance for sole proprietorships?
You have just started as an entrepreneur with the legal form of a sole proprietorship. Alt all seems to be going well, mbut Suddenly you are faced with a claim for damages. For example, a customer holds you liable for damage due to poor workmanship. Damage claims that come along with this can be very high.
How are such liability issues regulated? And what does the liability insuranceinsurance for sole traders benefit to you? In this blog we discuss this.
The best way to compare liability insurance for a sole proprietorship
First, of course, it is important to look carefully at your requirements. What risk do you want to be covered.
There are two different types of insurance for companies. The corporate liability insurance and the professional liability insurance.
The professional indemnity insurance
DThis insurance relates to financial loss and is mainly aimed at professions with an advisory role. In these professions, there is a chance that the wrong advice is given, resulting in financial loss for the client. This insurance covers the following:
- Professional errors
- Legal liability;
- Violation of privacy;
- Libel and slander;
- Infringement of third party rights (intellectual property rights);
- Retaliation costs.
- Costs of defence and the prevention or reduction of damage
In some sectors, such as financial advisers, this insurance is mandatory. Check your situation check carefully what the situation is. This insurance canIn addition to its possible compulsory nature, this insurance It can also be seen as a sign of reliability and professionalism.. Sometimes a client expects you to have this insurance. The costs of this insurance are higher, because there is a greater risk for the insurer. As a sole proprietor, the premium starts at approximately at € 400 per year.
The corporate liability insurance
You can see this insurance as a kind of third-party insurance for entrepreneurs. This insurance provides for a payment for damage for swhich arose during the exercise of a profession.
For example when you accidentally knock over the client's computer. Damage that occurs during your workt fallt not covered by your private liability insurance, but under that of your company.
Handy to have thus, with respect to liability. This insurance covers , among other things damage to persons or property caused by yourself in the course of your business have caused. The cost of consequential damage or possible injury is also covered by this insurance.
The insurance is not compulsory, but it is recommended. A client or principal may also require that an AVB be taken out, or, for example, a trade association may require that an AVB be taken out.
You limit the liability and, moreover there is already a company liabilityinsurance from € 10,- euro per month.
Why a liability insurance for one-man business?
As an entrepreneur, you are liable for your company and staff. Damage claims can be enormous. To cover this risk, it is best to take out liability insurance. Depending on which one you choose, or both, you cover your business against the risk of high claims for your own wallet. In the case of a sole proprietorship, you are ultimately personally liable if you do not have sufficient financial resources.
Close your liability insurance for sole proprietorship with Alpina: simple and affordable
Do you want to take out liability insurance as a sole proprietor? Then you are at Alpina the right place. At Alpina you always get the most complete insurance at the right price. Do you have questions about taking out insurance? Then please contact contact us or request a no-obligation quote.
Calculate the premium of your liability insurance zzp directly!
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